3.12. Legacies and distributions (South African Resident Individuals)

3.12.1 Legacies and distributions from resident estates

Cash bequests and the cash proceeds of legacies and distributions from resident estates due to non-resident private individuals, non-resident entities, and/or trusts may be remitted abroad, provided that the Liquidation and Distribution Account bearing a Master of the High Court reference number is available. In cases where the total assets of the resident estate are less than R250,000, cash bequests and the cash proceeds of legacies due to non-resident private individuals, non-resident entities, and/or trusts may be remitted abroad, provided that the Last Will and Testament and Letter of Executorship or Authority are available.

In all cases where such an estate holds authorised foreign assets, distribution of the foreign assets may be effected to non-residents, provided that all foreign administrative and related costs have been met from the foreign portion of the estate.

Other assets inherited by non-residents may be exported under cover of the required SARS Customs Declaration, provided that such articles are bequeathed to the beneficiaries in terms of the deceased’s will or otherwise in terms of the Liquidation and Distribution Account bearing a Master of the High Court reference number.

Capital distributions from local testamentary trusts due to non-residents may be remitted abroad, provided that the trustees’ resolution confirming the capital distribution and the Last Will and Testament confirming that the beneficiary is entitled to such capital distribution are available.

Distributions as a result of the renunciation of a beneficiary’s right to capital of a testamentary trust must be referred via an Authorised Dealer to the Financial Surveillance Department.

3.12.2 Gifts and/or donations from non-residents

Individuals may, with effect from 2022-02-23, receive and retain abroad monetary and other legitimate gifts and donations received from a non-resident source without having to declare it to an Authorised Dealer, subject to local tax disclosure and compliance. These dispensations shall not apply retrospectively, and any contravention before 2022-02-23 must still be regularised with the Financial Surveillance Department.

3.12.3 Foreign inheritance and legacies from bona fide non-resident estate

Individuals are not required to declare to their Authorised Dealer inheritances or legacies from bona fide foreign estates that accrued after 1998-03-17 and may retain the capital and any income generated thereon abroad.

3.12.4 Foreign inheritance and legacies from South African estates with foreign assets

Individuals may without reference to the Financial Surveillance Department retain foreign assets inherited from a South African estate, subject to local tax disclosure and compliance.

Where it is disclosed to the Financial Surveillance Department that the foreign assets inherited were held by the deceased in a manner contrary to the provisions of the Regulations, an application for regularisation of such assets must be submitted via an Authorised Dealer to the Financial Surveillance Department.

If approved, the retention of such assets abroad may be subject to the payment of a levy.

Foreign assets inherited and which were held abroad by the resident beneficiary not in compliance with the provisions of the Regulations, must apply for regularisation via an Authorised Dealer to the Financial Surveillance Department.